Making sustainable supply chains core to business.

Tuesday, April 28th, 2009 | Selene Gittings

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Last week Impactt attended an interesting event called ‘Putting market access into practice: Reaching the bottom billion through corporate supply and distribution chains.’ The event, organised by ODI, DFID and Business Action for Africa explored how supply and distribution chains can be harnessed to expand opportunities for the poor while delivering key business benefits.

Speakers included Andy Wales (Head of Sustainable Development- SABMiller), David Croft (Sustainability Director- Cadbury),  and Euan Wilmshurst (Stakeholder Engagement Manager- The Coca Cola Company). Caroline Ashley (Overseas Development Institute) acted as a respondent.

One of the key themes discussed was that the sustainability agenda is no longer confined to CSR or PR departments within organisations but has moved into core strategy and day-to-day business practice. It’s no longer just about doing good. It’s about realising that small growers, workers and communities lie at the heart of supply chains and helping them build sustainable futures is vital for the sustainability and success of the supply chain itself. As Euan Wilmshurst put it ‘Our business is only as sustainable as the communities in which we operate.’ This commitment to sustainability is also reflected in Cadbury’s £44 million investment in cocoa farms across Ghana, India, Indonesia and the Caribbean through the Cadbury Cocoa Partnership.

Another key theme discussed was the importance of effective local partnerships in delivering successful projects on the ground. Impactt whole-heartedly echoes this view and this year we launched the ‘Local Resources Network’- an online community which links companies with local resources (NGOs, trade unions, auditors, social scientists, other specialists) in their sourcing countries.

But while it was encouraging to see the positive work companies like SABMiller, Cadbury, Coca Cola and others are engaged in, the event also raised some critical questions. Why don’t we have more and bigger examples of supply chain reform? Can the pace of progress be faster? Why don’t we have more cooperation among competitors on this issue? How scalable and replicable are current projects?

The speakers pointed out that there are challenges of cost, scale and knowledge and of course the fact that real, long term sustainable projects simply need time. As always, there are no easy answers. But it was very encouraging to see a room full of brands, NGOs, academics, campaigners, students and development experts genuinely convinced in the power of supply chains to promote development. We hope brands will continue pushing the agenda, further integrating ethics with core business and driving real, sustainable change in their supply chains.

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